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Businesses must start paying towards the worker furlough scheme from August, Rishi Sunak has announced.
At Friday’s Downing Street briefing, the Chancellor set out the details of how employers will be expected to start paying the wages of furloughed workers.
Starting in August, employers will be asked to pick up National Insurance and pension contributions for employees.
The government is currently paying 80 per cent of workers’ salaries up to £2,500 a month for 8.4 million workers through its furlough scheme.
This will continue through June and July but, in the following months, businesses are going to be asked to contribute a share.
From September, the Government will reduce the amount it pays workers to 70 per cent, capped at £2,190, while employers pick up the extra 10 per cent.
In October the Government will reduce their subsidy to 60 per cent of wages up to a cap of £1,875 while employers pick up the extra 20 per cent.
After October, the scheme will close, Mr Sunak said.
Bosses will also be able to bring furloughed employees part time from July 1 – a month earlier than previously announced.
Employers will be responsible for paying their employees’ wages while in work and it will be up to them to decide the hours and shift patterns.
UK returns to work as Coronavirus restrictions are eased – In pictures
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Londoners returning to work near London Bridge
Jeremy Selwyn
2/29
Emergency as Lockdown is slowly lifted at Victoria Station
Nigel Howard
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Cyclists travel in central London
AFP via Getty Images
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Emergency as Lockdown is slowly lifted at Victoria Station
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Alan Price on his Penny Farthing this morning on Battersea Bridge
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Delivery men are seen outside a reopened McDonald’s with take-out only deliveries in Dalston
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7/29
Jubilee Line tube commuters as lockdown eases
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Worlds End Nurseries in Chelsea opens for business. Customer Nika Kucifer is shown flowers by Janson Lotery
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Londoners going back to work at Waterloo
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10/29
People ride bicycles in a cycle lane in Chelsea
PA
11/29
Jubilee Line tube commuters as lockdown eases
Nigel Howard
12/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
13/29
Jubilee Line tube commuters as lockdown eases
Nigel Howard
14/29
Jubilee Line tube commuters as lockdown eases.
Nigel Howard
15/29
Matt Writtle
16/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
17/29
Vehicles are seen on the M56 motorway near Manchester,
Reuters
18/29
Londoners going back to work at Waterloo
Jeremy Selwyn
19/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
20/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
21/29
Monty’s first day back. West Highland Terrier Monty commutes to work on his bike on his first day back with owner Darragh McElroy. Monty, who’s Instagram account is @monty_whitehall_westie, works at the Cabinet Office in Whitehall with his owner Darragh who is Deputy Director of Coronavirus Communications at the Cabinet Office
Matt Writtle
22/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
23/29
A commuter wears a mask at Canning Town station
Reuters
24/29
Rush hour on the M6 at the junction for Birmingham/Walsall on the first morning of the eased Coronavirus lockdown
PA
25/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
26/29
Commuters, some wearing masks are seen on a London Underground tube, following the outbreak of the coronavirus disease
Reuters
27/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
28/29
Commuters, some wearing masks are seen at Stratford station,
Reuters
29/29
Cyclists in Chelsea today.
Nigel Howard
1/29
Londoners returning to work near London Bridge
Jeremy Selwyn
2/29
Emergency as Lockdown is slowly lifted at Victoria Station
Nigel Howard
3/29
Cyclists travel in central London
AFP via Getty Images
4/29
Emergency as Lockdown is slowly lifted at Victoria Station
Nigel Howard
5/29
Alan Price on his Penny Farthing this morning on Battersea Bridge
Jeremy Selwyn
6/29
Delivery men are seen outside a reopened McDonald’s with take-out only deliveries in Dalston
Reuters
7/29
Jubilee Line tube commuters as lockdown eases
Nigel Howard
8/29
Worlds End Nurseries in Chelsea opens for business. Customer Nika Kucifer is shown flowers by Janson Lotery
Nigel Howard
9/29
Londoners going back to work at Waterloo
Jeremy Selwyn
10/29
People ride bicycles in a cycle lane in Chelsea
PA
11/29
Jubilee Line tube commuters as lockdown eases
Nigel Howard
12/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
13/29
Jubilee Line tube commuters as lockdown eases
Nigel Howard
14/29
Jubilee Line tube commuters as lockdown eases.
Nigel Howard
15/29
Matt Writtle
16/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
17/29
Vehicles are seen on the M56 motorway near Manchester,
Reuters
18/29
Londoners going back to work at Waterloo
Jeremy Selwyn
19/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
20/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
21/29
Monty’s first day back. West Highland Terrier Monty commutes to work on his bike on his first day back with owner Darragh McElroy. Monty, who’s Instagram account is @monty_whitehall_westie, works at the Cabinet Office in Whitehall with his owner Darragh who is Deputy Director of Coronavirus Communications at the Cabinet Office
Matt Writtle
22/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
23/29
A commuter wears a mask at Canning Town station
Reuters
24/29
Rush hour on the M6 at the junction for Birmingham/Walsall on the first morning of the eased Coronavirus lockdown
PA
25/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
26/29
Commuters, some wearing masks are seen on a London Underground tube, following the outbreak of the coronavirus disease
Reuters
27/29
Londoners going back to work at Vauxhall
Jeremy Selwyn
28/29
Commuters, some wearing masks are seen at Stratford station,
Reuters
29/29
Cyclists in Chelsea today.
Nigel Howard
The Chancellor said: “Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.
“We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side.
“Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”
Employers will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
Employees who believe they are not getting their 80 per cent share can report any concerns to the HMRC fraud hotline.
The Chancellor also revealed an extension to the self-employment support scheme so that workers can claim a second and final grant worth 70 per cent of their average monthly trading profits and capped at £6,570 in total.
